INCOME OPPORTUNITY

• Eco Tourism

• Gold Mine Tourism

• Conservation Mitigation

• Gold Mining

In 1990, geologist Paul A. Metz wrote that ‘dredging on Woodchopper Creek accounted for the majority of the past gold production of 117,564 troy ounces...’ Data released by the Alaska Gold Company from its past dredging operations (at the creek) indicates that the bucket line dredges on the average recovered 90% of the contained free gold in the processed gravels.

These reports collectively portray Woodchopper Creek as a well-known source of precious metals and for the presence of other recoverable metals, including tungsten, tin, iron, and rare earths.

Rare Earths at Woodchopper Creek

Rare earths are 17 metallic elements identified in the middle of the periodic table as atomic numbers 21, 39, and 57–71. These metals have unusual fluorescent, conductive, and magnetic properties, which make them very useful when mixed in small quantities with more common metals such as iron. The “rare” in rare-earth elements is a historical misnomer. The U.S. Geological Survey finds that many rareearth elements are as common as other industrial metals, such as chromium, nickel, tungsten, or lead. Even the two least abundant rare-earth elements (thulium and lutetium) are nearly 200 times more common than gold. These elements are labeled “rare” because, in contrast with other metals, rare earths do not often concentrate in exploitable ore deposits. Consequently, most rare earths come from a small number of sources.

As an example of their many beneficial characteristics, rare-earth batteries offer greater energy density, better discharge characteristics, and fewer environmental problems upon disposal. High-strength rareearth magnets have allowed numerous electronic components used in appliances, audio and video equipment, computers, vehicles, communication systems, and military gear to be miniaturized. Fiberoptic cables that use erbium can transmit signals over long distances because the erbium amplifies the signal.

Over the past 20 years, China has gained control of about 97% of the world’s rare earths either through territorial control or possession of exclusive mining rights. Competitive nations such as China have learned to use rare earths as an economic and political bargaining chip on the international stage. This has placed rare earth-poor nations, including the U.S., at a disadvantage. To the extent that new domestic supplies can be developed, including those at Woodchopper Creek, international tensions would be eased, and national security would be improved.

Mineral Value of Unpatented Claims

In 1990 Joe Vogler hired consulting mineral geologist Paul A. Metz to study and report on the extent of gold ore reserves contained in the 52 claims. He also asked Metz to predict the market value of recoverable gold deposits. Metz’s unpublished report presents an in-depth assessment of recoverable gold in both the unpatented claims and in the tailings left over from the mining of the patented claims. His report concludes with these statements:

Conclusion

This economic analysis of the Woodchopper Creek placer gold property reveals that significant values of indicated and inferred reserves of modern alluvial placers are present. In addition, there exists a high potential for the discovery of paleoplacer reserves that can be mined by conventional placer mining methods. The existing dredge tailings also have considerable value for road construction in the Yukon-Charley Rivers National Preserve.

Utilization of these tailings would not result in increased disturbance to the land surface or to other stream bed sources. The total estimated market value of the proper is $8,141,348.

Of interest, Metz’s market value is based on a market price for gold of $350 per troy ounce, while the real price in mid-1990 was over $750 per ounce (Figure 10). Why would Metz not draw on the actual market price? Perhaps he wanted his estimations to be seen in a conservative light; his report is riddled with such language. But one might wonder how Joe Vogler would have reacted if Metz had reported a market value of $17M for Woodchopper Creek gold instead of $8M – which is how the $750 value would have translated in Metz’s report.

Source: EASI report dated July/August 2022